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Dec 25, 2021
Boston Beer Q4 2021 Earnings Report
Boston Beer's financial performance declined due to hard seltzer category slowdown and supply chain challenges.
Key Takeaways
Boston Beer reported a decrease in fourth-quarter net revenue and a net loss, primarily driven by shipment decreases and indirect volume adjustment costs related to Truly Hard Seltzer. Despite these challenges, the company saw growth in depletions and aims to level set inventory levels and reset their growth model to benefit from future category growth.
Fourth quarter depletions increased 15%, while shipments decreased 24.5%.
Net revenue for the fourth quarter decreased by 24.5% to $348.1 million.
The company experienced a net loss of $51.8 million, or $4.22 per diluted share, compared to a net income of $32.8 million in the same quarter of the previous year.
The fourth quarter net loss was primarily driven by a more aggressive wholesaler inventory reduction than expected, mainly affecting Truly Hard Seltzer, with indirect volume adjustment costs reaching $52.0 million.
Forward Guidance
The Company currently projects full-year 2022 Non-GAAP earnings per diluted share of between $11.00 and $16.00.
Positive Outlook
- Depletions and shipments increase of between 4% and 10%.
- National price increases of between 3% and 5%.
- Gross margin of between 45% and 48%.
- Increased investments in advertising, promotional and selling expenses of between $0 and $20 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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